tv Squawk Alley CNBC January 29, 2016 11:00am-12:01pm EST
♪ welcome to squawk alley for a friday morning. kara swisher, executive editor of recode is in washington. good morning to you. a quick check on the markets here. dow is up 192. the best week so far of the year for the dow a lot of that thanks to the boj going with negative interest rates. chicago pmi was good. japan surprise move as the dollar moving against the end we'll watch all of that. then amazon hit hard after earnings missed expectations but sales after amazon web services
up 69% and prime membership up 51% year on year but the take away for many is that they have so much demand they either don't have a place to put it or they're paying for more a place to put it and then to ship it. what's your take on this today? >> it's great for consumers. and the more popular they become the more hostile it becomes. i use amazon a lot. especially this holiday season. it's interesting because the prices were very competitive. but again i saved all kinds of money in order to attract all these customers amazon has to do a lot of things that raise the cost. retail is a very tight margin. that's what happened here. >> people probably don't want to hear this on a morning when the stock is down about 9% but i think amazon turned in a really good quarter. pretty much across the board. now granted in the past when the fundamentals were pretty strong,
but maybe they missed revenue or maybe they missed the eps the stock will still go up. maybe the valuation got so rich it came based on the idea that now we're going to get the same margins every quarter. now amazon is going to go for quite awhile. expanding those. that's why we see it down a bit now at levels we saw a few days ago. especially when you look at the prime numbers, the growth in europe up 50% in streaming. you look at how strong you're growing that loyalty is going to pay dividends for quarters to come. >> $100 billion in revenue best profit in the history. did wall street come to expect too much for this company. >> they think there's going to be a lot of growth. it's a retail business. did it compare to other retail businesses? >> yes it did great compared to walmart or others. it's going to be costly to build this business and amazon has
always been this fear that the dream will never come true. that this is paying peter to paul thing. it's questionable because the retail business has very tight margins so everybody is saying it it is very costly to build these prime businesses and thank goodness they have a cloud business. that's been rather well. >> i mean there was a time when web services not that long ago was sort of the secret that was tucked away in the corner. mysterious unit that nobody knew about. the times was probing around and now that it is in some ways given relative to retail. it's the saving grace. >> retail is tough. no matter how you slice it. the competitive prices you're going to cost and that's the way it's going to be in the retail if they're going to do it. the question is is there a light switch that turns on and it becomes ridiculously profitable? you've been waiting for this to
happen. that's why investors are wary of the situation. >> not to mention the unbelievable out performance last year. difficult for names with those kind to repeat it in the year to follow. even though it's early in the year and there's microsoft. nice gain after profit and revenue beat estimates. speaking of the cloud, a huge bright spot on track for 9.4 billion in annual revenue. we do have a situation where they have got the benefit of the cloud. bing actually doing okay and then actually just taking a torch to cost. >> not very sexy. >> if phone situation is obvious for everyone already. but it has a nice upswing so, you know, they're doing very well in a very much quiter way but to be sort of really managing the business and that's very much like him. >> i don't know when people are going to call microsoft sexy. i guess what we see here -- >> never.
>> they don't marly need to be but the important dynamic for me in this report was microsoft's ability to weather both the pc slump and the enterprise head winds that we saw reflected in intel and in ibm. they were still able to out perform and out execute despite that. that stands in contrast to some of these invisible cloud businesses that we see unfortunately in a company like ibm. they talk about how much cloud is growing but you look at their results and you say where is it. it's two big pillars. they were still able to show it in the results. it's a really good side. >> finally, moving on, a couple of big moves from tech ceos under fire. jack dorsey rallying his troops. leading to a bunch of employees and you reported that yahoo!'s marissa myers looking at lay
offs with this maintain kill list let's tackle them one by one. what's important about the yahoo! story? >> they're starting the lay offs. and the reports inside the company, they fired some people and retired them and it's quite disorganized. people inside are quite upset about how this is being done. she has been doing stelth lay offs for awhile. they have performance me tricks that they have. now you'll see some sort of discussion of it next week. she's really caught. she'll have to make significant declarations about cost cuts so i expect it to be maybe 1500 people next week. and we'll see where she goes from there on the sale. really most of the action is around whether the company is going to be for sale and it's obvious to everyone that this company has to be sold.
>> cara on one hand you have the lay offs but on the other hand the company that's subject to so much headline risk has to worry about the talent they want to keep. keeping their resumes off the street. are they able to do that now? >> the good yahoo! people, i mentioned a few in the story i wrote and the people that are losing and there's somebody very important and others like that. and i noted someone that does all of marissa mayer. she does all of her strategic decks and things like that. they're losing other talented people. it may not matter because the thing is going to get sold and the company doesn't need all that. it's a bad situation.
no matter how you slice it. >> at what point did marissa myer lose the script. they were talking about how many resumes they were getting in the door. was there a certain point where she should have just taken the pain, made the bid cut, talked about it up front. i have heard moral out of yahoo! people and former yahoo! people just steadily marched into negative territory because they feel there's been this silent bleed like marissa is protecting her own reputation more than the company. >> i would agree. she promised it to the board when she got the job and then didn't do it and clearly had to do with her own reputation as far as i can see. lots of people understood that it was a bloated environment and if she had done it at the beginning when she had all of that good will it would have been a very different story. >> two companies between yahoo! and twitter where you documented
the exodus diligently. now people starting with twitter after the last few days, can we make that parallel fairly? >> i don't think so. it's very different. jack did make lay offs and did declare them pretty publicly. i think that with their issue is the product issue. that's a basic product issue. they're too small. their advertising revenue, i think it's $2 billion is still too small and it's not big enough and so the question is can they grow users? and the only way to grow users is to have a great product and most people feel the product needs to resolve. that's a very basic thing. if you can do it and hire the people in there that allow him to do that, that's great. except he's under pressure. same thing. will someone buy it. is there enough investors? will investors start to make a lot of noise. this is a company also subject to a lot of media scrutiny. so the question is can they change the product in time for a
very impatient investor base. >> it's below 17 again today. it was a $74 stock at one point. do you believe people in the valley still think of twitter as a good place to go work. >> i think it will be harder. i think he's a compelling executive. he'll be there halftime. should he be getting another executive to run the square. he devotes his time to it. that's a valid question and it needs a lot of work and a lot of attention. the issue is can they move this -- it's a product issue of twitter and then the rest will follow. they have done very well in advertising as much as they can. but the question is can they it rate the product. product, product, product is everything. it's the same problem at yahoo!. product, product, product. >> is there any kind of danger you think in jack dor sy making
these kinds of inspirational speeches in front of the state troopers. does he make it about coming to work for jack and jack is only working for twitter. does it raise the stakes for what he has to deliver in the next 12 months. >> these are common. they're famous these rallies. people like him. he's a very likable character. he's a really likable executive. it's good to link it to him and he cares. there's nothing wrong with those things. sometimes they become comical. developers, developers, developers. but that's very common and then companies in general so it's fine. i just think the commitment has to be the time commitment and that he's really paying attention to a number of things. investors, product, recruiting. it's a tough job and he's really got to focus on it. people start talking about his two jobs very seriously. >> i don't hear you talking about twitter as a property for
sale the way you do about yahoo! >> you know i said that. >> i think it's getting sold. >> i think i'd be surprised if it doesn't get sold. >> the question is who. yes. the question is who. >> changing times cara, really good to see you. great stuff this week. cara swisher joining us in washington today. our next guest is top executive and start up factor. the original creator of g-mail. he's going to talk google and investor sentiment in the valley. join us in a cnbc exclusive. the best week of the year so far on the dow. we're back in a minute. ♪ there's a lot of places you never want to see "$7.95."
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>> he created gmail and google's now famous slogan but he has a new job. launched more than 1,000 companies including airbnb and drop box. josh we'll send it over to you. >> thank you kayla and paul thank you for joining us this morning. we appreciate it. >> thanks, josh. >> i want to start just talking about the general financing environment here in silicon
valley. it is cooling. saw that slow down in the fourth quarter. for the start up that you're advising and guiding, paul, are they having more trouble getting funding now? >> it's still a little too soon to know. we won't start fund-raising for a couple of months but there's definitely a chill in the air and i'm telling them don't try to be a unicorn. try to be a cockroach. they're hard to kill. so keep it low and stay lean. >> try to be a cockroach. so when you talk about this chill in the air paul, is there advantages to that kind of environment. >> that's beneficial in the long-term. when there's too much money, when it's too easy to get money, that can actually be a detriment to the stronger start ups so our
most successful company to date, as you mentioned airbnb was funded at the end of 2008 right after the financial crisis and they have done very well but that was actually advice we gave to that batch which was be like a cockroach because we don't know if there will be anybody out there. and i think that kind of thinking leads to more disciplined operations and more controlled growth. everything that makes a great company. >> and paul, you know, we mentioned creator of gmail and also the 23rd employee at google back in 2000-2001. talk about that environment. did google benefit back then from that kind of tough environment? >> absolutely. i distinctly remember every week another start up would go out of business and we would interview all of their engineers and hire the best people.
so there's no question that google benefitted from the end of the world that happened back in the 2000 era. easy access to the best employees. low rent. those are all good things for a healthy company. >> john, i think you had a question for paul. >> i do. hi paul. john here at the stock exchange. i can't help but look back historically and see back when you worked on g-mail it was part of the web 2.0 movement making e-mail and communication more efficient. that was visionary. so was friend feed making social more efficient. what is the thing that needs to be improved now that needs to be made more efficient? that's going to drive this next wave of growth. >> i'm excited about tech moving beyond the web and addressing the larger issues like housing, energy, education, these are areas where people are really
struggling to even afford to pay their bills so i'm most excited and we don't know yet but i'd love to see some start ups taking on those problems. >> paul i'm wondering. >> kayla, do you have a question? >> yes. >> i'm wondering after the stunning success that we saw of facebook, amazon, netflix, google last year and the four horse men mentality or the new four horse men if you're seeing companies that are building new products having to build on to one of those echo systems or if there's still a viable stand alone tun. >> well, ultimately i think they have to be stand alone. it's very hard to build a facebook sized company if you're depending on google. >> but that said you're always -- it's not always obvious what the path is. so at the time i think a lot of people are skeptical that that is going to grow into a large
business. >> hey, paul, it's josh again. >> it's traditionally associated with software companies but i know that bio tech is an area where you're interested in putting money to work. why bio tech. what drives that enthusiasm. >> well, for me it's a combination of factors. one is the potential impact in bio tech is enormous. but two, there's really been, i think we're at an inflection point where we have a lot of revolutionary new technologies. the cost of sequencing and pretty much everything else is declining exponentially. and in the next 20 years we're going to see as much innovation and wealth creation in bio tech as we saw in internet space in the past 20 years. >> one final question.
and you're not easy to get a hold on when it comes to e-mail. you tend to avoid it. why is that paul? >> there's too much of it. too much e-mail. i think we have taken care of a lot of the technical issues on e-mail back when we started work on g-mail. spam was a big problem and organization. everything was a mess. at this point my view has become more of a social problem. and will be sick and on vacation and just keeps coming in and piling up and i don't think any of us really likes that. >> all right. thank you for joining us. we really appreciate it. we'll send it back to you guys. >> i know what a pain that can be. up next, we're watching a rally on wall street. the dow up better than 90 points. all the major indices up 1%.
the nasdaq lagging a little bit. the next thing to pay attention to of course, the close over in europe. we'll bring it to you. we'll come right back. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
approving the merger of the two companies last night. that deal is set to close today. a strong competitor to the current leader in the audience measurement business. joining us exclusively today. it's good to have you back. good morning. >> thanks for having you. >> people have been talking about busting up the strong hold for years. we're part of that story on cnbc. why is this actually going to make a difference. >> we're going to be creating a new model for cross platform measurements. so what the issue is at hand today is audiences and ratings
and they currently have in the traditional rating system is very thin. as a result we just need a better measurement system. the issue is media fragmentation. it all comes down to media fragmentation. as you know with all of our consumption with our daily lives you interact with so many more devices. it used to be traditionally the tv in the family room used to be the biggest point of consumption during the day. now it's not only just that it's your pc. it's your mobile phone. it's your tablet. it's your over the top using hulu or netflix or sony crackle. it's so many more devices that are out there that consumers are interacting with and as a result you need better measurement for a massive and passive scale. it cannot be kind of the same old thing. it needs to be based on massive sample sizes. massive scale to be able to make
sure that this time around it actually works. >> the hurdle so far has been getting cooperation from all of those fragmented parties. netflix, hulu, amazon to provide the data to companies so that you can report accurate ratings. any progress there? >> yeah, sure. we work with a lot of them today. some we can and some we cannot disclose. some of it just on the baseline here. the new com score is going to be able to measure over 2,050 million desktops. over 150 million, or 200 million mobile phones and tablets. 40 million tv sets. 120 million video on demand. we have partners like hulu and others where we're getting a lot of their data as well. so we have a lot of partners today. we don't have them all as you can imagine. there's always more than you can get but just the baseline that
we're talking about is in the hundreds of millions as a starting point and what we're going to be doing with it is obviously merging all of that data together and creating a world class cross platform service. >> one thing to talk about a cross platform service but have you figured it out technically? there's always new devices and methods for streaming coming online. whatever you create has to be able to handle all of those. do you have the technology figured out. >> we do. we're going to be very quick at it. we have a bunch of data scientists. we have the right team between com scoring and we have the right team together. we already created it. we will be releasing it soon to the industry. so it's not -- we worked together. the beautiful thing about this merger is comscore and renttrak worked together in the past for
our clients. we know each other. our culture is the same. big data innovation culture and it's no longer fiction. it's really a reality and it will be happening -- the starting point will be happening in a short number of weeks. >> of course, you know, we can all talk about this and they can say that the overnights are meaningless but in the end you have to have the buyers believing in the metric, right? so how much progress are you making in that front? >> it's all about the advertisers and they are how we all make money at the end of the day. for us it's not just measuring the impact of incremental reach and frequency across all of the screens. so you obviously want to measure how many people watched the tv and how many people watched that same content on their mobile phone and on their tablet and over the top device. what they care about also as
well, equally in some cases not more important is that the advertising associated with that content actually drives sales and we're able to do that today. we able to link all of that data at scale in a massive way, at scale, down to off line sales working with partners like oracle and iri and other companies where we're able to put all of those data sets together and see did that actual commercial that you viewed on any of those screens, did it actually drive a sale? >> it's going to be fun to watch. congratulations. good to see you. >> thank you. >> the ceo of comscore. while we have been talking europe is closing for the week in the u.k. and across europe. stocks joining this global rally on the boj surprise rate cut into negative territory. they're going to finish with a gain for the week but for the month, europe's broader market,
the stoxx 600 down about 7%. that's the biggest january decline in 8 years. the italian mib, the worst performer among the markets down 14% for the month. >> when we come back, shares of amazon continuing to struggle today but one top analyst is still bullish on the stock going forward. he'll join us to make his case in just a moment. these are the hands, the hands that drive commerce, that build business across borders. these are the hands of pitney bowes, the craftsmen of commerce. these are the hands that sew the seeds of business growth, that weave the data, and find the perfect spot to thrive. these are the hands of pitney bowes, the craftsmen of commerce.
cnbc update this hour. they have filed an appeal of his conviction and death sentence in the 2013 boston marathon bombing and seek a reversal of an order he paid $100 million to the pictures of the attack. iranian state tv said it flew a surveillance drone and took it as part of its on going naval drill. they leave that area where the drill is taking place. brazil is losing the battle against the mosquito spreading the virus. and eradicate the insect and the cdc releasing this electronmicrograph. the drawings and ceramics are being sold by his granddaughter. they're valued between 9.9 and
$14.1 million. beautiful addition to any collection i think. >> that is the news update this hour. back down to squawk alley. kayla, back to you. >> thanks so much, sue. back at headquaters. shares at amazon watching all morning going lower after yesterday's earnings miss. the company posted the biggest profit ever but shy of wall street's expectation. is today's dip a buying opportunity? ken is an analyst at evercore isi. when you look at the quarter it's a blessing and a curse. blessing for volumes but a curse for costs. does amazon have to reverse that trend or will we see more of this going forward? >> when you look out at the broadest retail landscape in e-commerce you're still seeing very strong growth, profitable growth and i think when you look at the unit acceleration, the fact that you're seeing third party sellers more reliant on amazon and the fact that really they were at capacity when they
finished the year in term of their fulfillment center. they're going to need to invest. but you're right it's a little bit -- you have to take the good and the bad. >> we got to a point where whenever we get these numbers where amazon says our prime membership grew by 50% that everyone that owns the stock collectively wins. >> when you see the growth in prime and you see the unit acceleration and you see the consumers and sellers on amazon strengthening and their share continuing to grow. i think everyone does win in the end. but you also have to make sure that they're getting the right experience and the sellers are as well and i think that amazon is investing. what happened in this quarter though also is that they might have underestimated some of the demand that they were going to get in addition to reliance that third party sellers are going to have in terms of fulfillment by amazon and ultimately some of
the variable cost. >> it's a good problem to have in a lot of ways but you a $720 price target. how much of amazon getting there actually depends on amazon at this point? how much has to do with the macroenvironment. amazon is still up with pretty much everybody else over the past 12 months. won't the stock be in jeopardy just because it's valuation is so rich? >> they were asked about the macro. >> and didn't answer. >> and not surprising but i think that their point is usually they're not a great indicator of macro because they have such a strong secular tail wind. i would agree with that. people are increasingly reliant on amazon for many or most of their purchases. that's a good place to be in. to not lose that lead and when you think about the overall consumer opportunity, the overall enterprise opportunity they're extremely well
positioned in both of those markets. so to try to make sure that they continue to stay out in front, you're seeing that for things like echo. >> we had a discussion yesterday about whether amazon conditioned investors wittingly or unwittingly to expect a little bit more that the error of margin had finally come. is it this sort of dream deferred for a little while. >> on the top lying, probably. came in a little bit lighter than they were expecting. it is what it is. i think on margins i don't think anybody was maybe expecting some of the higher variable costs that came from the demand in the final months for the fact that the fulfillment by amazon sellers were going to be as strong as they were and that actually was sort of an important point because amazon books it's third party revenue net but when you're dealing with
the expenses that they're providing in terms of fulfillment and shipping for third party sellers they book that growth. so the fact that third party is now increasing so more than just about half of their fulfillment by amazon increasing about half of their third party units means that third party moves from a source of leverage to fulfill to a source of deleverage. that's something folks are still getting their head around. >> she said thank goodness amazon has the cloud. it is one of these. what else does amazon have to lean on as it's reinvesting? >> you're seeing big investments in video and ultimately you have cloud there to provide selection recommendation and ultimately help people have a better content experience but at some point how you consume your content is probably going to start to lead into how you also consume your other goods and amazon wants to make sure that they're very well positioned as
content does start to intersect more. >> can you ask the company about content on the call and my read of the company's answer is they view content more as a prime retention and renewal tool and less thinking about video as making amazon the first destination for video. do you think that's changing? >> i think it has to be both. because i think if you're going to make three investmentsn video. you want them to come for video also an i thinktent to th that amazon has the prime engine behind it and the retail business. i think it allows them to just continue to do that. that much more aggressively. i don't think you see them up. >> wall street is trying to digest. >> thank you very much. appreciate it. >> up next, another quick check on microsoft. up 5.4%.
plus check out the markets. and stocks continuing to rally a do you up close to 190 points and the nasdaq up about a percent. the s&p hanging in there just over a percent. rick santelli what are you watching today? >> the tightening of rates in the u.s. all things being equal, everybody else tightened right. sit a good thing? just contemplate. there's managed markets. and free markets. we're going to discuss the difference in how understanding japan might be the key to really seeing the future.
>> coming up on the half, one of the worst months ever for stocks. has the correction run it's course? plus analyst mike mayo takes his sell rating off bank of america and says the stock is now a buy. he'll join us live to explain the call and your best bet in tech? apple, amazon, microsoft? our best ceos and stocks as well. >> let's get over to the cme group. there were segments going on discussing fundamentals.
it's refreshing to talk fundamentals. i long for the days to talk fundamentals but i would be doing you a disservice because it isn't really the fundamentals we need to pay attention to. there's free markets and managed markets and it's so common sensical that we don't know it inherently. but think what happens. every company that doesn't make money year after year sets pollties that didn't work year after year, what happens to that company? at least in the united states. at least for now? they're gone now let's think about companies and countries that don't have free markets or mostly free marks. what happens to company that don't make money? maybe the government under writes them. that's why because when i look
back at the mortgage crisis for example there's an example of not free market within a free market country where the mentality was to roll the dice on policies that would never be changed until an even actual end and the end is disaster and crisis what if various parts tried to manage all the stocks. think of an even better example. i remember not long ago the price of oil was higher than today. bernie sanders lots of people saying we have to make rules to stop speculation. if they would have done that my guess is we'd still have $140 oil. probably wouldn't have any fracking. that's probably the way it was turned out but thank god that it wasn't inactive. it took care of itself. by the way, how many big press
conferences are you seeing about keeping the price down too low? i haven't heard that. have you? let's take another example. let's go the other way. think about all the unregulated derivatives allen greenspan talked about for years before the crisis. bad policy unlike free market systems if the policy is bad only ends in one way. when the lanes are literally ripped out of the hands of policy holders ending in crisis now we are all in this together. one down side to globalization is that bad policy comes back to haunt us no matter what country of origin. kayla, back to you. >> rick santelli. thanks. the wealth of mark zuckerberg and jeff bezos heading in different directions this week.
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billionaire mark zuckerberg added 6 billion to his paper wealth yesterday with strong book earnings. he added another half million this morning. 48 billion as of right now making him the 16th richest person in the world. he has already passed larry ellison and the coke brothers. this is according to forbes and the bloomberg billionaire list. he was ranked number 16 right now. a big jump now. bezos has gone the other way. last october he had been in the running to overtake warren buffet as the third richest man in the world. he lost more than 6 billion bringing his network to below 49 billion and dropping him down from 4th place to fifth. as of this morning zuckerberg and bezos are tide for the fifth place position each around $48 billion. zuckerberg is of course 31 years old. bezos around 52. facebook has only been around for 12 years versus amazon's 22.
zuckerberg still has a long way to go to catch up to bill gates worth 78 billion. book stock would have to hit 183 for zuckerberg to be the world's richest man. either way, guys, 99% of it will go to charity. so it's all good for shareholders. it's good for zuckerberg and charitable causes. >> once you factor that in, do these guys even know for sure how much they're worth? there's all talk about how much is mike bloomberg really worth? the numbers fluctuate every day. are they keeping track? >> well, with bezos and sukerberg it's easy. it's all in the share price. they don't have a lot of islands or assets that you add on to their share ownership. we know how many shares they own. we can get instant reliable numbers. other people like trump or bloomberg where it's a private company plus a lot of other
assets these guys are pretty transparent. >> once you're dealing with good will, the stock is easier. thank you. >> thank you. >> and earlier, xerox announcing it's going to spin it's services business off into a separate company with carl icahn getting board seats. the ceo joined squawk box this morning talking about the split. >> what we found is that having two companies that have fundamentally different movements, one grows slower than the other. one needed a little bit more investment in development and developing it's market than the other. one threw off a lot more cash than the other. it was probably better that we split so that we can be more flexible. more responsive and more fit and focused for the markets that we're attacking. yesterday i was hearing the pitch for why they belonged
together. everybody was trying to beat ibm a decade ago. and xerox and on and on it was a massive and costly mistake for everybody. to confuse the delivery model which was people in this case which is the valuable asset which is enterprise software. question is which portion of the offering actually has the value and what's going to get commoditized. >> and so many assets along the way like easy pass. the interstate toll system. it doesn't naturally fit. it will be interesting to see the lines that are dawn. interesting to see what the companies are named. they haven't decided on a name for either. and you think of a xerox every time you think of a copier. >> people making comparisons to hp getting together and splitting apart and also great
innovations in tech that happened 50 years ago. >> people might make a comparison to dell which just sold off systems and has gone private in the meantime. there's a circle of life in these cases. companies that are having trouble. >> good news for fans of house of cards when we return. [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.
>> the show will go on. meantime the stock continues to just be a -- you can't say it any other way. it's a dog year to date. >> they have to be hoping for another snowstorm the weekend of march 4th. everybody logs on and watches it. >> difficult to watch. >> it is but they have managed to hand over the baton from house of cards to other properties that continue to perform for them.
so it's not like the buzz is all dependent on that. >> microsoft is not only the best performing dow component along with visa. it's built on its gains for the day. we're looking at a 5% move. puts it back above the 50 day. it's a sign of strength coming off of that quarter. >> a lot of the analyst commentary focuses on the fact that the revenue upside is going to come from the pc segment which they're calling a vulnerability going forward. >> i don't see it that way. windows 10 has been so well reviewed thus far. the enterprise has not yet upgraded and we haven't had that yet to take full advantage of it. the back half of the year to me does look relatively right for pc's relatively because it looked so dreary in the holiday season. >> those stocks are still up about 5% today. earnings beat revenue missed. people were surprised to see
some what bullish commentary even as spending drags. >> some surprised that visa affirmed their forecast for the full year and we know the challenges they had with currencies. dow is up 240 now and big names still to report next week: let's get back to headquaters and the half. >> thank you so much. welcome to the halftime show. let's meet the starting line-up for today. our game plan looks like this. tech's best bet in a week of apple. amazon, facebook and microsoft earnings. which ceo and stock stands out the most. b of a upgrades. star analyst mike mayo takes the stock off the chopping block after two long years. he joins us live to explain exactly why. we begin with the end of the month. one of the worst januaries ever